Adroit Industries IPO Lists 87% Higher on BSE, Then Gives Back Gains

A debut that beat the grey market

Adroit Industries (India) Ltd, a maker of propeller shafts and driveline components, had one of the strongest stock market debuts of India's autumn IPO season. A month later, much of that listing pop has disappeared. On September 30, 2026, the shares opened at ₹250 on the BSE. That was ₹116, or 86.57%, above the ₹134 issue price.1617 The NSE opening was lower at ₹235, a premium of 75.37%.1611 On BSE the stock traded between ₹240 and ₹250 on its first day and last changed hands at ₹248.35. On NSE it reached a high of ₹248.39.13

The gap between the two exchanges explains why headline figures differ. Some outlets led with the BSE premium of almost 87%. Data aggregators that track NSE prices recorded a listing gain of 75.37%, worth about ₹11,211 per 111-share lot.711 All sources agree on the two opening prices. They differ only in which exchange they chose to highlight.

The opening was far above the grey market's forecast. Just before listing, the unofficial premium stood at ₹55, which pointed to a debut near ₹189, about 41% above the issue price.16 The stock opened about ₹61 higher than that on BSE. Grey market quotes had moved around a lot during the offer period. They were near ₹26 to ₹35 when bidding began, rose to ₹37 on September 24, peaked at ₹58 on September 27–28, and slipped back to ₹55 by listing day.97 Even at its highest, the grey market priced in less demand than the stock actually saw at the open.

How subscription built up

The ₹150.71 crore offer opened on September 23 and closed on September 25. The price band was ₹126–134 and shares were sold in lots of 111.1213 It had two parts: a fresh issue of 98.97 lakh shares worth ₹132.62 crore, and an offer for sale (OFS) of 13.5 lakh shares worth ₹18.09 crore.15 The OFS seller was promoter entity Mukesh Sangla HUF.8 Before the public offer opened, the company raised ₹45.21 crore from anchor investors. The final price was set at the top of the band.16

Demand grew in a pattern typical of strong Indian IPOs. Day one ended at 5.18 times subscription, mostly from retail buyers, who covered their portion 7.24 times. Institutional bids that day were tiny.210 By the end of day two the book was 18.07 times covered. Non-institutional investors had bid 27.21 times their quota and retail 23.43 times, while qualified institutional buyers (QIBs) were at only about 1.82 times.81

On the final day, institutional money arrived in force. The issue closed 176.85 times subscribed. QIBs bid 195.04 times their quota, non-institutional investors 332.35 times and retail investors 99.81 times.16 One tracker put the overall and retail figures slightly lower, at 176.12 times and 98.49 times, which looks like the difference between provisional and final exchange data.5 Either way, institutions went from barely participating to heavily oversubscribing their portion in a single session. That late surge is the best explanation for why the listing beat a grey market that had mainly been following earlier retail demand.

The valuation question

Analysts disagreed most about valuation. At the upper price band, the company's market capitalisation was about ₹600.43 crore. At the BSE opening price it rose to roughly ₹1,120.21 crore.16 The offer prospectus put the price-to-earnings ratio at 17.89 times before the issue and 22.95 times after dilution, based on FY26 basic earnings per share of ₹7.48.15

The peer group named in the offer documents makes that multiple look demanding. Hindustan Hardy traded at about 12.98 times earnings, Talbros Engineering at 10.76 times and GNA Axles at 20.85 times.15 Religare Research rated the issue "Neutral." It said a post-issue P/E of 22.95 times was a premium valuation that called for caution, even though the company's finances were improving.6 Coverage in The Economic Times took a more positive view. It suggested investors consider the issue as a long-term holding because of the company's vertically integrated operations and export strength.10

The financials give some support to the optimists. Profit after tax rose to ₹26.16 crore in FY26 from ₹18.14 crore a year earlier and ₹14.53 crore in FY24. EBITDA increased to ₹38.71 crore from ₹31.02 crore.15 Return on net worth improved to 22.51% from about 19% in each of the two previous years.15 Revenue grew much more slowly, however. Total income went from ₹136.61 crore to ₹143.04 crore, a gain of under 5%.15 Most of the profit growth therefore came from better margins rather than higher sales. The balance sheet also changed: total borrowings rose to ₹52.4 crore at the end of FY26 from ₹8.32 crore a year earlier.15

In our view, the 87% opening went well beyond what those numbers support. At ₹250, investors were paying roughly 33 times trailing earnings on a post-issue basis. That is well above the listed peers. A company growing revenue in single digits needs strong margin gains to justify such a multiple.

Where the money goes

The company's stated use of the proceeds shows how it plans to grow. It intends to spend ₹19.91 crore on machinery and transport vehicles at its Dewas facility. Another ₹43.96 crore will go to its subsidiary Adroit Driveshafts for capital spending at Pithampur.16 A further ₹24.12 crore is set aside to repay or prepay the subsidiary's borrowings.16 By Outlook Money's count, ₹63.87 crore, or about 72.6% of the stated proceeds, is for capital expenditure.16

That split is a positive sign. Most of the fresh capital is going into capacity rather than paying off old lenders, and the OFS is a small part of the deal. The debt repayment does matter, though. It goes straight at the subsidiary-level borrowing that drove the jump in group debt in FY26.

The company says it makes propeller shafts and torque-transmission components for driveline systems, with more than 5,000 stock keeping units covering precision-machined parts, complete shaft assemblies and forgings.16 Reports do not agree on when it was founded. The Economic Times and Outlook Money say it was incorporated in 1995, while one data aggregator gives 1966.41615 The 1995 date appears in the more mainstream coverage.

A busy listing day

Adroit did not list alone. It was one of four mainboard IPOs debuting on September 30, and it was described as the clear standout.17 Not every issuer that week did as well. Elevate Campuses, for example, listed at a discount of nearly 2%.16 The contrast suggests investors were picking carefully rather than buying everything on offer. Smaller industrial and auto-component names with export exposure and visible profit growth attracted heavy oversubscription, while other offers had a quieter reception.

The first month after listing

What happened next matters for anyone who bought on listing day. By the close on October 19, 2026, the stock was at ₹171.44 on NSE, down 3.72% that session.13 That price is still about 28% above the ₹134 issue price, so investors who were allotted shares in the IPO remain in profit. Anyone who bought at the ₹250 BSE opening, however, is down about 31%. Based on the 4.48 crore shares outstanding after the issue, ₹171.44 implies a market value of roughly ₹770 crore, well below the ₹1,120 crore implied at the open.1315

The fall effectively brings the stock back toward where the grey market had placed it. Today's price is close to the ₹169–192 range that grey market quotes suggested during the offer period.56 The listing-day spike now looks like the result of a crowded order book and allotment-driven buying more than a lasting re-rating. Religare's caution about valuation has turned out to be closer to how the stock has actually traded since.

What it means

The takeaway from the Adroit IPO is not that the company was mispriced at ₹134. With almost 177 times subscription and a still-solid premium a month later, the issue price looks reasonable, if anything slightly cheap. The lesson is about the gap between subscription numbers and fair value. When QIBs bid 195 times their quota on the final day, a sharp opening jump is likely. That jump reflects how scarce shares were in allotment, not a new view of the company's long-term earnings.

For Adroit, the next test is whether the Dewas and Pithampur expansions can push revenue growth above the single digits seen last year. Until then, the share price is likely to keep moving with sentiment around small-cap auto-component stocks rather than with the company's own fundamentals.